O'AHU DESTINATION MANAGEMENT ACTION PLAN 2021-2024 - O'ahu ka 'ōnohi o nā kai - Hawaii Tourism Authority
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O‘AHU D E ST I N AT I O N M A N AG E M E N T A C T I O N P L A N 2021–2024 O‘ahu ka ‘ōnohi o nā kai O‘ahu, the center of the seas
Contents 2 I. INTRODUCTION 18 III. VISION FOR O‘AHU TOURISM 2 Purpose of the Plan 19 IV. GOAL 4 Formation of the DMAP 19 V. OBJECTIVES 4 Implementation Framework 20 VI. ACTIONS 5 II. OVERVIEW OF TOURISM IN HAWAI‘I 31 VII. TOURISM HOTSPOTS 5 Statewide Trends 32 Acknowledgement 6 Resident Sentiment 33 Glossary 7 Tourism Forecast 34 Appendix A – Actions for Future Consideration 7 Tourism on O‘ahu 35 Appendix B – Sources 10 Situation Analysis Summary O N T H E C OV E R This ‘ōlelo no‘eau speaks of O‘ahu as the principal island of the group - that special gem. ‘Ōlelo No‘eau—Hawai‘i Proverbs & Poetical Sayings by Mary Kawena Pukui, Number 2353. 1
I. Introduction PURPOSE OF THE PLAN In 2019, the Hawaiian Islands received a record high of 10.4 million visitors. While this brought in $17.75 billion in total visitor spending to Hawai‘i’s businesses, $2.07 billion in taxes generated, and supported 216,000 jobs statewide, it has put pressure on our destinations and communities. This situation is not unique to Hawai‘i. Other popular destinations – from Venice, Italy to Machu Picchu, Peru, to Kyoto, Japan – have also felt the negative efects of tourism, which not only impacts residents’ quality of life but also the quality of the visitor experience. 2
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 In recognition of these challenges, the Hawai‘i Tour- The idea of “regenerative tourism” gained momen- ism Authority (HTA), in partnership with the coun- tum in 2020, as the global COVID-19 pandemic has ties and the respective visitor bureaus, initiated the increased awareness of tourism’s opportunities and process of developing community-based Destination vulnerabilities. What is regenerative tourism? About Management Action Plans (DMAPs) that aim to 15 years ago, the model for “sustainable tourism” was rebuild, redefne and reset the direction of tour- instituted, built on tourism that was environmentally ism over a three-year period. The focus is on stabi- friendly, culturally sensitive and had less impact than lization, recovery, and rebuilding of the desired high numbers of visitors. Regenerative tourism takes visitor industry for each island. The actions put sustainability one step further and focuses on the net forth in the DMAPs are guided by an island-based beneft of the visitor economy to a destination, looking Steering Committee, that went through a collabora- at social and cultural benefts and costs. tive process which encouraged participation and vital input from the community, visitor industry and other “Regenerative tourism is bolder and more inspiring. It sectors. The DMAPs identify areas of need as well aims not just to do less harm, but to go on and restore as actionable solutions for enhancing the residents’ the harm that our system has already done to the natu- quality of life and improving the visitor experience ral world, and by using nature’s principles, to create across the islands. the conditions of life to fourish. It views wholes and not parts and is a very diferent way of looking at the world.” (Anna Pollock, international tourism consul- HTA’s 2020-2025 Strategic Plan is organized tant and founder of Conscious Travel) around four interacting pillars – Natural Resources, Hawaiian Culture, Community, Many of the actions in this plan take a regenerative and Brand Marketing, with more emphasis on tourism approach. addressing tourism impacts and greater desti- nation management. In the plan, HTA defned Destination Management to include: • attracting and educating responsible visitors; • advocating for solutions to overcrowded attractions, overtaxed infrastructure, and other tourism-related problems; and • working with other responsible agencies to improve natural and cultural assets valued by both Hawai‘i residents and visitors. The DMAP initiative is a part of HTA’s strategic vision and plan to manage Hawai‘i tourism in a responsible and regenerative manner. 3
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 FORMATION OF THE DMAP critically examined destination attributes valued only The process of the development of the O‘ahu DMAP by residents, only by visitors, and by both residents started with HTA, the City & County of Honolulu’s visitors, as well as those that are at-risk or threatened. Ofce of Economic Revitalization and the O‘ahu Visi- The Steering Committee also discussed several goals tors Bureau (OVB) developing a list of O‘ahu stake- and a vision for tourism on O‘ahu. From there, they holders who represented the visitor industry sectors brainstormed actions – what to protect or mitigate, (hotel, attractions, activities), other business sectors what to preserve or grow, and where the gap can be (e.g. agriculture, retail), the community (e.g. Hawai- closed or bridged. During subsequent meetings, the ian culture, education, regional), and other nonproft actions were grouped, and overarching anchor actions organizations. They also represented the commu- and sub-actions were identifed. The proposed actions nities that they live in. Invitations were sent, and 23 were then presented to residents during two virtual members volunteered their time to participate on the community presentations on May 4 and 5, 2021. The O‘ahu Steering Committee (see Acknowledgement community was encouraged to provide their input section). during the presentations as well as through an online input form. During the frst Steering Committee virtual meeting, the members reviewed HTA’s Strategic Plan, including After reviewing the community feedback, the Steering HTA’s key performance indicators and four pillars, Committee met virtually. They revised the actions which is the foundation of the O‘ahu DMAP. The group and ranked the anchor actions in order of importance. HTA staf, the City and OVB reviewed the proposed actions to confrm they could be done under their respective purviews. The Steering Committee held additional meetings to review the revised list of actions and provide comments and adjustments. All of the anchor actions were developed by the Steering Oversight by Committee with input from the community. Hawai‘i Tourism Authority (HTA) IMPLEMENTATION FRAMEWORK Partnership with City & County of Honolulu’s Office of Economic Revitalization and Hawai‘i’s tourism industry is at a critical point and O‘ahu Visitors Bureau residents’ livelihoods depend on the recovery of the visitor industry – directly or indirectly. Tourism needs to be managed responsibly so that residents and desti- Guided by Steering Committee nations can thrive. HTA is leading many of the eforts in the O‘ahu Destination Management Action Plan. However, there needs to be collaboration and support Input from Broad Community from other state and county agencies, the community, the visitor industry and other sectors, to help move the actions forward. This is a three-year plan and a living document that will be evaluated annually against key performance indicators. Figure 1 Collaborative Process 4
‘A‘ohe hana nui ke alu ‘ia. “No task is too big when done together by all.” ‘OLELO NO‘EAU (HAWAIIAN PROVERB) II. Overview STATEWIDE TRENDS Tourism has remained the primary economic driver of Tourism for Hawai‘i’s economy across all islands. In 2019, tourism was 16.2% of Hawai‘i Gross Domestic Product (GDP), second to real estate and rental and leasing at in Hawai‘i 18.8% of Hawai‘i GDP. Jobs in the tourism industry accounted for 20% of total jobs in Hawai‘i while jobs in the real estate and rental and leasing sector accounted for 4.4% of total jobs. For eight consecutive years, the State of Hawai‘i’s visitor industry sustained annual growth in terms of arrivals and expenditures. In 2019, tourism was the largest single source of private capital for Hawai‘i’s economy. Total visitor spending reached $17.84 billion (1.1% increase compared to 2018). 5
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 Tourism generated $2.08 billion in state tax revenue. A total of 10,424,995 visitors came to the Hawaiian Islands by either air service or cruise ship (5.4% increase over 2018). The visitor industry has provided employment oppor- tunities and supported the development of small businesses throughout the state. In 2019, tourism supported 216,000 jobs in Hawai‘i. For several years, the Hawaiian Islands experienced record visitor arrivals with no signifcant increase in the number of traditional lodging units (e.g., hotels and resorts). However, unpermitted short-term rentals increased in Hawai‘i’s neighborhoods. Prior to the global COVID-19 pandemic, 2020 was set to be another year of unprecedented growth for Hawai‘i. However, fight cancellations to the Hawai- ian Islands due to the pandemic began in February 2020, initially afecting the China market. On March 14, 2020, the Centers for Disease Control and Preven- tion (CDC) began enforcing its “No Sail Order” on cruise ships. On March 17, Hawai‘i Governor David Ige asked upcoming visitors to postpone their trips for at least the next 30 days. The counties also began issuing stay-at-home orders. Efective March 26, all passengers arriving from out-of-state were required to abide by a mandatory 14-day self-quarantine. By the end of March, most fights to Hawai‘i were cancelled, and the visitor industry was severely impacted. On April 1, the mandatory self-quarantine was extended to inter-island travel. In 2020, total visitor arrivals declined 73.8 percent Hawai‘i’s unemployment rate increased from 2.0 from the previous year to 2,716,195 visitors. There percent in the frst quarter of 2020 to 19.4 percent in were signifcantly fewer arrivals by air service (-73.8% the second quarter. After this peak, the unemployment to 2,686,403). Arrivals by cruise ships (-79.2% to rate continually declined to 14.5 percent in the third 29,792) also decreased considerably, as cruise ships quarter, 11.2 percent in the fourth quarter, and then were operating for only the frst few months of the year. 7.7 percent in the second quarter of 2021. Total visitor days fell 68.2 percent. Visitor arrivals by air service decreased sharply in 2020 from the U.S. West (-71.6% to 1,306,388), U.S. RESIDENT SENTIMENT East (-70.3% to 676,061), Japan (-81.1% to 297,243), HTA conducts an annual Resident Sentiment Survey Canada (-70.2% to 161,201) and All Other Interna- (RSS) to gauge resident attitudes toward tourism in tional Markets (-80.4% to 245,510). Hawai‘i and to identify perceived positive and negative 6
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 impacts of the visitor industry on residents. Positive TOURISM FORECAST resident sentiment is important to maintain a healthy According to the Department of Business, Economic industry. The 2019 RSS report showed that resident Development and Tourism’s (DBEDT) 2021 Second sentiment had generally weakened compared to the Quarter Outlook for the Economy, visitor spending previous year. By extension, the quality of the visitor will increase 117.8 percent in 2021, to $11.1 billion, experience will likely decline if this trend continues. a 38 percent decline in expenditures from the For now, the two are inexorably linked and changes are pre-pandemic 2019 results. Visitor spending will necessary to improve resident sentiment – there must then increase 34.0 percent in 2022, 12.9 percent in be a better balance of economic, social and cultural, 2023, and 7.2 percent in 2024. Hawai‘i is expected and community benefts from tourism. Providing resi- to welcome 6.6 million visitors in 2021, a 36 percent dents with a voice in tourism development, creating decrease from 2019. Visitor arrivals are anticipated jobs with opportunities for advancement, and creating to increase to 8.6 million in 2022, 9.5 million in 2023, shopping, dining and entertainment opportunities are and 10.1 million in 2024. key to improving resident sentiment. DBEDT projects that for 2021, the average annual unemployment rate will be 7.7 percent, then decrease to 6.3 percent in 2022, 5.6 percent in 2023, and 5.0 percent in 2024. These rates are much higher than Hawai‘i’s average unemployment rate of 2.5 percent from 2017 to 2019. TOURISM ON O‘AHU Riding the surge of global travel in 2019, O‘ahu saw visitor arrivals reach a record 6.15 million visitors. Those visitors contributed $8.14 billion in expendi- tures to Hawai‘i’s economy. On average, visitors stayed 6.8 days and spent $195 per person per day. Tourism on O‘ahu accounted for 45.6 percent of all tourism spending in Hawai‘i and supported 99,152 jobs (direct, indirect and induced). There were 8.3 million scheduled trans-Pacifc air seats to the Daniel K. Inouye International Airport (HNL) – 4.0 million from U.S. West, 0.9 million from U.S. East, 1.9 million from Japan and 1.5 million from other countries. On O‘ahu there were 39,240 visitor lodging units, including 27,060 hotel units, 3,956 condo hotel units, 3,821 vacation rental units, 3,782 time- share units, and 621 other types of units. 7
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 O‘ahu had an average hotel occupancy of 84 percent of direct air seats into O‘ahu fell 60 percent. The visitor and an average daily rate of $235. Other visitor industry decline also resulted in a loss of jobs on O‘ahu, accommodations were also experiencing boom times with accommodation jobs down 48 percent (-9,200 (timeshare: 95% occupancy, vacation rentals: 75% jobs) and food service, restaurants and drinking places occupancy). Approximately 60 percent of visitors losing 15,900 jobs for a 33 percent loss. stayed in hotels, while condo (10%), timeshare (10%) and rental houses (10%) were also well used. In May 2021, there were 310,744 visitors to O‘ahu, compared to 508,088 visitors in May 2019. Visitor Visitors commented that O‘ahu needed to improve its spending was $418.3 million, down 39.5 percent from trafc situation which ultimately impacted their travel $691.1 million in May 2019. The average daily census experience. They also stated that the island needed showed that there were 80,895 visitors per day on more local cultural experiences. O‘ahu in May 2021, compared to 109,584 visitors per day in May 2019. Overall 79 percent of O‘ahu visitors gave it high satis- faction marks1. However, a study by Destination- Through the first five months of 2021, there were NEXT2 found some concern that O‘ahu had issues with 925,147 visitors to O‘ahu compared to 2,462,487 visi- accessibility for disabled, walkability and bikeability, tors (-62.4%) in year-to-date 2019, and total visitor needed improvement in public Wi-Fi, and did not have spending of $1.24 billion represented a 62.2 percent enough outdoor recreation and sports facilities. decrease from $3.29 billion in year-to-date 2019. Visitors did less self-directed tours and driving around As more visitors arrive in the islands, the overall visi- O‘ahu than on the other islands. Similar to the other tor satisfaction is trending downward from 85 percent islands, visitors visited the beach for sunbathing. rating their trip excellent at the beginning of 2021 to However, they were less likely to swim in the ocean 76 percent in June 2021.4 The top complaints included or hike. limited capacity and availability of restaurants and attractions as well as fnding Hawai‘i too crowded. At the same time, O‘ahu residents strongly felt that Further, fewer visitors indicated they did all the activ- overcrowding, trafc problems, damage to the envi- ities that they had planned for. ronment, and increased cost of living were problems being caused by tourism. Resident sentiment towards In the most recent Resident Sentiment Study5 released tourism had signifcantly weakened in 2019 compared in June 2021, 55 percent of O‘ahu residents felt that to the previous year (the percentage of residents who tourism has brought more benefts than problems. said that the overall impact tourism had on their family This rating was higher than the other counties but was extremely positive was 24 percent positive in 2018 had gone down slightly from 61 percent in 2019. On but 16 percent in 2019).3 the regional level, residents were particularly critical of tourism and its impact on the Wai‘anae, Windward Then in 2020, the consequences of the global and North Shore communities. pandemic resulted in visitor counts dropping 75 percent compared to the previous year. The number 1 Satisfaction: The percent of visitors who rated a 7 or 8 on a scale where 1=Poor and 8=Excellent. 2 DestinationNEXT Multi-User Diagnostic Assessment: Hawai‘i Statewide, Destinations International and MMGY NextFactor, December 30, 2019. 3 HTA Resident Sentiment Survey 2019 Highlights, February 2020. Field dates: September 27 to November 14, 2019. 4 HTA Visitor COVID-19 Study, June 2021. Among visitors to Hawai‘i from the U.S. Mainland who visited Hawai‘i from May 15-24, 2021. 5 HTA Resident Sentiment Survey 2021 Highlights, June 2021. Fielding dates: April 27 through June 2, 2021. 8
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 Residents were also asked to rate the importance of specifc strategies for the state to better manage tourism.5 • 88% of O‘ahu residents said that it was important for the state to educate visitors and residents to mālama the islands and each other • 74% - eliminate illegal vacation rentals on my island • 71% - charge visitors access fees to state parks and trails • 66% - encourage visitors to volunteer and give back during visits to Hawai‘i • 64% - not allow building of additional hotel/condo/timeshare units on my island • 62% - stop approval of additional legal vacation rentals on my island • 57% - designate resident-only days at some state parks, beaches and trails O‘ahu residents also said that the top prob- lems created by tourism in Hawai‘i were over- crowding, trafc, damage to the environment, and too great a dependency on tourism. 5 HTA Resident Sentiment Survey 2021 Highlights, June 2021. Fielding dates: April 27 through June 2, 2021. 9
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 SITUATION ANALYSIS SUMMARY Strengths As a part of the DMAP process, a SWOT analysis was Safety. O‘ahu, along with the State of Hawai‘i is gener- conducted by the Steering Committee members who ally perceived as a “safe” destination. identifed the destination’s existing strengths and The State and the City and County of Honolulu problems, as well as opportunities and threats present have prioritized safety and health during the in the external environment. The SWOT analysis is a pandemic. As O‘ahu moves forward, these system- useful tool in the decision-making process, as it can atic prioritizations and strategies on testing, be used to evaluate strategic positioning, as well as vaccination, quarantine of travelers, Safe Travels, identify projects that would be reasonable to execute and other safety measures have resulted in some in the short term. This feedback was supplemented of the lowest numbers of COVID infection cases with research and data that helped to support the and deaths in the U.S. This further speaks to and observations that were made. The information below confrms the validity and perception of O‘ahu (and provides more details on each section of the SWOT Hawai‘i) as generally being a safe destination that analysis matrix shown on Table 1, page 16. prioritizes health and safety for residents, commu- nity and visitors. Hawai‘i’s violent crime rate in 2021 (2.9 incidents per 1,000) is lower than the national rate of 3.7. 10
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 Depth of Product. O‘ahu’s “Town & Country Expe- After the “stay/work at home” lockdown through- riences, All On One Island” positioning continues to out the State, country and globally, O‘ahu’s beauty set O‘ahu apart from the other Hawaiian Islands and and outdoor experiences are highly attractive to is generally unique for Pacifc Island destinations. those with pent-up travel desires. Alongside O‘ahu’s oferings of Hawaiian cultural and Many of O‘ahu’s natural sites and outdoor recre- historical experiences, O‘ahu boasts a robust multi- ational areas are accessible to residents and cultural community with a wide range of experiences. visitors because of the City’s well-developed roads O‘ahu has the highest number of visitor accommo- and transportation infrastructure. dation units, venue space, ground transportation, Tourism Jobs and Workforce. Availability of a profes- air transportation (fights) and experiential sional workforce and time-tested training infrastruc- infrastructure than any other Hawaiian Island, ture. lending itself to better accommodating the needs of both the leisure and meetings markets. The pandemic has brought about some of the highest layofs and furloughs. However, O‘ahu has Honolulu Harbor is the embarkation or disem- the largest pool of tourism workers compared to barkation point for most cruise ships resulting in the other islands, giving it an advantage to having additional pre- or post- cruise stays on island. the right number of skilled workers necessary for Natural Beauty. Natural beauty and outdoor expe- the recovery period. riences have not been compromised during the O‘ahu has multiple universities and colleges that pandemic and continue to exist around O‘ahu. can develop and provide education and workforce Due to the pandemic, residents experienced lock- training programs. downs and were encouraged to minimize activities Appeal. O‘ahu has traditionally had a strong inter- away from home. Visitors were also absent from national appeal. O‘ahu attracted an even mix of 50% the island. This has given many natural sites a domestic and 50% international visitors, prior to the brief moment to rejuvenate due to the separation pandemic. from human overuse. Hanauma Bay is a good example of this. Historically, market mix was an O‘ahu strength. Currently, it can be construed also as a weakness due to the impact of closed international borders and travel. However, O‘ahu hopes to see this dynamic return as the world returns to normalcy in the future. Meetings and Conventions. O‘ahu draws more meet- ings than any other island and ofers a multitude of convention and incentive opportunities, including the Hawai‘i Convention Center. The meetings trav- eler spends signifcantly more than the leisure visi- tor. Convention and business meetings also generate ancillary spending in the destination through the rental of event space, equipment leasing, and corpo- rate hospitality functions. 11
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 Problems Hotspots. Recreational sites, attractions and commu- nities are overtaxed by crowds or inadequate infra- structure creating many “hotspots” where residents and visitors compete for access to the same resources and locations. The Steering Committee felt that 6.15 million visitors in 2019 was too much for the current infrastructure, natural resources and residents’ quality of life. The group cited intrusion into resi- dential neighborhoods, inadequate maintenance and enforcement, inconsistencies in park policies and reservation systems, and lack of/or poor infrastructure in parks, beaches, and bathrooms. Illegal Vacation Rentals. The County policy on tran- sient vacation rentals is the most restrictive of all the counties; and this policy is still not fully resolved, etc. Cost of Travel. Due to current pandemic policies in place, the cost to travel to O‘ahu includes testing costs, higher accommodation rates, additional fees and more, increasing the travel cost. The limited availability of attractions and rental cars has also driven up prices. Unfortunately, the cost to visit Hawai‘i does not always match up to the expected level of service and experi- ences. These costs are expected to be temporary but for how long, is unknown. Product Decline. Many of O‘ahu’s experiences, includ- ing but not limited to accommodations, attractions, therefore more at risk for failure. Their loss could activities, tours, restaurants, and festivals and events, lead to fewer authentic experiences in culture, art, that provide the destination’s depth of products may entertainment, and recreation. not survive the economic impact of the pandemic. Therefore, O‘ahu will have less to ofer. Marketing and Destination Management Budget Cuts. HTA and its Global Marketing Team (GMT), Most visitor industry businesses are facing including the Hawai‘i Visitors and Convention Bureau challenges of reopening to full capacity, impacting (HVCB), as well as the O‘ahu Visitors Bureau, have the O‘ahu travel experience, which could impact a seen and will continue to experience reduced fund- prospective visitor’s travel decision. ing for crucial management eforts of the destination Native Hawaiian-owned frms in the tourism related to community, environment, and culture. This sector are smaller in terms of employment size, includes budget cuts for marketing eforts necessary to lower annual average wage, and lower annual sales kickstart the tourism economy, efectively target the per frm as compared with state averages and are appropriate type of visitor, and compete with other 12
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 destinations that are aggressively focused on captur- In the meantime, the brand’s delivery of quality service ing the same market share. may be tarnished. Secondly, the exodus of residents may have continued during the pandemic as talent was In 2021, and for the next several years, State tax drawn out-of-state to look for jobs elsewhere. collections and revenue might be signifcantly reduced due to a slower economy. This will Native Hawaiians accounted for 16 percent of the total most likely result in cuts to tourism funding and, workers in the tourism sector. However, their average subsequently, a lack of ability to provide desired wage and salary income was lower than the state level contracted services to manage and market tour- in each of the tourism-intensive industries, especially ism. in the real estate and rental and leasing industry where Native Hawaiians on average earned only three fourths The Legislature repealed the Tourism Special as much as the industry level. Understanding why Fund and Transient Accommodation Tax alloca- Native Hawaiians are underrepresented in our largest tion to the counties through the passing of HB862. industry and how to increase employment is critical This created an uncertainty in the source of to addressing diversity, equity and inclusion in the tourism funding. visitor industry. O‘ahu continues to be the only island that does not Resident Sentiment. Many residents do not fully receive county resources (budget and otherwise) comprehend the economic impact of Hawai‘i’s tourism to help with O‘ahu’s tourism eforts and marketing. industry and the number of businesses and jobs that Unemployment and Workforce. Currently, the are integrated into this industry. State’s dependency on tourism has contributed to Growing negative resident sentiment amongst one of the highest unemployment rates in the nation, those unafected by the tourism downturn may resulting in a severe downturn in the local economy. still perceive visitors as reckless “carriers of The rate of recovery for O‘ahu’s tourism industry may COVID” and endangering their community. They vary and is unknown. Due to the pandemic, much of may view the loss of visitors as a beneft to O‘ahu, O‘ahu’s travel related workforce was furloughed or rather than a problem. eliminated. This poses two problems. After a long period of not working, bringing back this workforce Many hotspots on O‘ahu result from the island’s will require much training, time and resources to bring large resident population and visitors vying for the level of service back to where it was or should be. access to the same resources and locations. 13
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 • Hawai‘i ranks as a top desired destination. For most Americans, beach destinations are priorities as their frst post-pandemic trip. While California and Florida would also be sun and sand domestic competitors, those states were also hubs for large COVID-19 outbreaks. Vaccinations. Individuals’ confidence to travel increases tremendously with the knowledge that vaccinations, protocols and testing is making it safe to travel. Safety and Health. Hawai‘i’s diligence in managing COVID-19 has provided a very positive and respected perception of Hawai‘i as a destination that cares about its residents, community, and visitors. This has posi- tive implications for O‘ahu and the other counties. Recovery of International Travel. O‘ahu typically Competitive Destinations’ Recovery Moving Slower. attracts 50% domestic and 50% international visi- Some competitive destinations that appeal to Hawai‘i’s tors. However, due to closed international travel and Avid Traveler (i.e., Thailand, Costa Rica, Australia, borders (many closed through parts of the year), the etc.) lag Hawai‘i in its recovery and marketing eforts, difculty of traveling for international visitors into the due to slower vaccination availability and dissemina- U.S. has reduced O‘ahu’s visitor numbers and diverse tion, closed borders and travel restrictions. mix drastically. International Travelers. O‘ahu has the infrastruc- With reductions in fights and travel from ture and language capabilities to support an increased international markets, the domestic market is number of international visitors who have higher insufcient to support current capacities required expenditures and show a higher propensity to follow for a healthy recovery. It also puts competitive respectful travel guidelines and engage in Mālama Hawai‘i practices. pressure amongst O‘ahu and the other islands. Many top competitors for international visitors Opportunities were the hardest hit. Top competing destinations Travel Desire, Travel Patterns. Not all sectors of (i.e., California, Florida, Europe, etc.) were consid- the U.S. and global economy have sufered during the ered the hotbeds of the virus and there may be pandemic, allowing for a portion of the population residual fear and avoidance of these destinations to still have discretionary income. Though income especially with travelers from Asia. behavior and attitudes towards discretionary income The State has already created cooperative solu- may have changed, people who can aford travel want tions to welcome major international markets to escape the pandemic stress. A spike in travel from (Japan, Korea, Canada, and Philippines) that still those who feel healthy and fnancially stable is antic- fnd it difcult to enter other countries. ipated. 14
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 Rebrand the Hawai‘i Experience. The recovery Threats period can be used to guide and manage tourism Airline and Cruise Industry Uncertainty. The messaging and products to better align with regener- primary way to visit O‘ahu and the Hawaiian Islands ative tourism goals. is by air travel. Concern arises with the possibility of Beneft from the movement to buy and consume airlines diverting aircrafts once international desti- local, seek authentic experiences, minimize nations reopen, and not knowing the recovery strat- carbon footprints, and support communities. egies of the airlines. Flight/aircraft reconfguration for social distancing and required cleaning protocols Compensate local community members who share would further increase the cost of air travel. In addi- their mana‘o of their place. This creates a trans- tion, cruise ship scheduling is dependent on the avail- formative and healing experience. ability and placement of ships in other destinations. Rethink marketing to educate and share with Consumer Confdence in Flying and Traveling. The visitors, pre-arrival, so they can be better stewards perceived safety of traveling on commercial airlines while they are on O‘ahu. and cruise ships is low. Additionally, many Americans may prefer to travel closer to home or within driving Ofer viable options to control visitor movement. distance in 2021. Involve residents in the experiences ofered to visitors. Industry Partnerships. Industry members can capi- talize on the relationships with hotels and airlines developed during the pandemic to create campaigns about safety protocols that may instill trust and conf- dence in potential travelers. Build broader industry support of sustainable environmental practices . Managing Visitors. The increased cost of visiting Hawai‘i does not have to solely be viewed as a problem or threat. It can be an opportunity to attract the right visitors, albeit less of them. Diversifying the Economy. To discover new and innovative ways to diversify the economy beyond tourism, consider other industries that can support the visitor infrastructure such as the flm industry which typically brings in higher wage-earning short-term workers that could compensate for leisure visitors. There is also the potential to recruit long-term stay visitors who can work remotely. 15
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 Economic Recovery. Economic recovery in both the Safety Concerns. Due to the general fear of the virus U.S. and most of O‘ahu’s key international markets and the new variants within the U.S. and from other may be slow and uncertain. In turn, prospective visi- countries, prospective visitors may still be cautious tors may choose to travel closer to home to save their or possess residual fear for travel in 2021, and possibly discretionary income. Consumer confdence has taken into 2022 or even 2023. a major hit in terms of personal fnances and health and safety. Travel patterns and behaviors may change The uncertainty of policies in other states and depending on the economic recovery and perceived countries that afect outbound travel may continue need to use discretionary income diferently. to limit or discourage travel to Hawai‘i for some time. Regional Travel. An extension of the local-slow move- ment, growing sentiment of American travelers to opt Competition. As O‘ahu moves forward in a post-pan- out of long-haul trips may result in deciding to explore demic environment, the island will face aggressive more local and regional travel. competition by all destinations who are open for business; even those not typically in its competitive Policies of Other Destinations. Other destinations set. Other destinations have already been assertive in may relax their travel and/or quarantine mandates their tourism recovery eforts. In addition, the costs to sooner than Hawai‘i, opening themselves up as a more market to O‘ahu’s pre-pandemic customers may have attractive travel option. O‘ahu may lose the initial increased. Potential policies pushing for additional surge of travel due to lingering County and State fee collection will increase the cost of the visit and protective measures and may face future challenges decrease the competitive advantage. to remaining competitive. International Travel. Many of O‘ahu’s international visitors are from countries with closed borders or travel restrictions. Additionally, the perceived lack of safety when traveling outside one’s country may be the sentiment globally. This would continue to impact O‘ahu, as half of O‘ahu visitors are international trav- elers. 16
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 Situational Analysis Summary Strengths Problems • Perceived as a safe and welcoming destination • Many hotspots resulting from residents and • Multicultural community visitors vying for access to the same resources and locations that are overtaxed by crowds or • Vibrant local communities inadequate infrastructure • Natural beauty and outdoor experiences • The number of visitors in 2019 was perceived • Unique Hawaiian culture and rich history to be too much for the current infrastructure, • Strong international appeal natural resources and residents’ quality of life • Time-tested professional hospitality infrastruc- • Visitors’ intrusion into residential neighborhoods ture • Global pandemic has created wary residents • Greater depth and choice of activities, historical who distrust outsiders (bringing in COVID, buying sites, and attractions than other destinations high-priced homes to live in) • Convention and meeting facilities • Reduced funding for crucial destination management and marketing eforts • Many attractions, experiences and small busi- nesses may not survive the pandemic Opportunities • Workforce not aligned with current needs • Rebrand the Hawai‘i experience • Cost of travel • Beach destinations rank high as the preferred • Recovery of international travel vacation post-pandemic • Illegal vacation rentals add additional supply • Capitalize on the possible near-term surge which allows high number of visitors in visitors from those who feel healthy and • Problematic visitors feel entitled to unlimited fnancially stable or cannot or will not travel to access, seek secret places, and desire to boast other destinations on social media • Diversify the economy with industries that are complementary with the visitor industry. • Industry partnerships for safety and environ- Threats mental initiatives • Economic opportunities tend to be valued more • Increased cost for visiting Hawai‘i and lower than natural and cultural resources loads don’t have to be only a problem or threat. These can be an opportunity to have less • Long-term trend towards more regional travel visitors, but the right visitors. driven by generational segments that are less adventurous, push for localism, decreasing the • Managing visitors travel carbon footprint, etc. • Aggressive competition by all destinations 17
III. Vision for O‘ahu Tourism • The O‘ahu DMAP vision was created based on feedback provided by the Steering Committee at multiple meetings. By 2024, together with the community, the visitor industry will be rooted in mālama – to take care of this place and each other. O‘ahu will live in joy, abundance, and resilience because visitors and residents understand what is pono, share common goals, and have respect for each other and the environment. 18
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 IV. Goal The goal of the DMAP is to rebuild, redefine and reset the direction of tourism over a three-year period. V. Objectives There are six objectives to achieve the goals and vision O B J E CT I V E 4 of the O‘ahu DMAP. Maintain and improve visitor satisfaction of their experience on O‘ahu. O B J E CT I V E 1 Create positive contributions to the quality of life for O B J E CT I V E 5 O‘ahu’s residents. Strengthen the economic contribution of O‘ahu’s visi- tor industry. O B J E CT I V E 2 Support the maintenance, enhancement, and protec- O B J E CT I V E 6 tion of O‘ahu’s natural resources. Increase communication and understanding between the residents and visitor industry. O B J E CT I V E 3 Ensure the authentic Hawaiian culture is perpetuated and accurately presented in experiences for residents and visitors, materials, and marketing eforts. 19
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 VI. Actions The actions were developed by the Steering Commit- tee and the community. In some cases, HTA took the essence of the community’s feedback and input and turned it into an action. The actions were shaped by underlying issues that were identifed by the Steering Committee and also appeared in the community input: • Reduce visitor impacts by improving infrastruc- ture, actively managing sites, and decreasing the number of visitors. • Desire for collaborative eforts among all industry partners in support of natural resources. • Ensure a balance between the needs and wants of residents and visitors, and the well-being of O‘ahu. • If residents are not happy then visitors will sense that and will not have a good experience. • We must manage the visitor experience with capacity limits at hotspots, promoting or allowing only selected experiences, and ofering alterna- tives to move visitors away from hotspots. • We must educate our visitors about respect for this land and its people. • We must pivot towards regenerative tourism. Regenerative tourism is how tourism can make destinations better for both current and future generations. was to gather input from the community regarding The community made remarks about limiting the how best to manage tourism on the individual islands number of visitors to the island, as well as reducing before and after the visitors arrive as well as how we the number of rental cars on O‘ahu. Unfortunately, mālama the visitors, and each other, once the visitors HTA has no control over these. The free movement are here. This includes considerations around protect- of people to travel to the islands and between the ing our ‘āina and perpetuating the Hawaiian culture. islands falls under federal jurisdiction. Businesses This does not, however, include deciding who can and are free to operate in Hawai‘i as long as they do not cannot come to an island specifcally, or to Hawai‘i in break any laws. The goal of the DMAP presentations general, since this is not in HTA’s jurisdiction. 20
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 - 2 0 2 4 Much discussion was had on diversifying Hawai‘i’s The long-term measures of success will be measured economy to be less dependent on tourism and there- through HTA’s Strategic Plan’s four overall Key Perfor- fore decrease the risk of another global shock. There mance Measures: Resident Satisfaction, Visitor Satis- were also suggestions to increase eforts to bring in faction, Average Daily Visitor Spending, and Total more sports events or support other similar industries. Visitor Spending. A “milestone” is a qualitative way of The State is already addressing this issue through its determining progress toward accomplishing a specifc Hawai‘i Economic Revitalization Task Force and defned action. The milestones for success are the other eforts through DBEDT. Therefore, the DMAP completion of each sub-action in the phase indicated. does not include any specifc actions to address devel- oping new industries or workforce retraining. The following tables identify opportunities and needs for each of the anchor actions, including the identifcation of responsible agencies and timing of the action’s commencement and/or delivery over a three-year period from September 2021 to August 2024. As HTA carries out the DMAP, there will be more organizations and businesses identifed to help move this plan forward. 21
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 O ‘A H U Action A Decrease the total number of visitors to O‘ahu to a manageable level by controlling the number of visitor accommodations and exploring changes to land use, zoning and airport policies. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 A.1 Lower the number of illegal short-term vacation rentals by L = County – Dept. of supporting the County to improve enforcement of current Planning and X X X regulations. Support the County in implementing new rules. Permitting S = HTA A.2 Provide resources to engage communities and agencies to L = HTA collaborate on additional rules; particularly to limit expansion X X of legal short-term vacation rentals outside of the resort areas. S = County, Community A.3 Commit resources to study methods of limiting supply such as: L = HTA • Controlling new visitor accommodation development S = County, Dept. through building permits or approvals for new sites. of Transportation X X X - Airports (DOT - • Exploring changes to land use, zoning, airport policies, etc. Airports) that infuence tourism infrastructure and ultimately deter- mine the number of visitors that can access O‘ahu sites. 22
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 Action B Implement a pre- and post-arrival tourism communications program to encourage respectful and supportive behavior. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 B.1 Identify the best messaging and ways to reach and communicate L = HTA with visitors prior to arrival. S = OVB, Global X Marketing Team (GMT) B.2 Support Hawaiian cultural educational and training programs – L = HTA including ‘Ōlelo Hawai‘i (Hawaiian language) for the employees in the visitor industry (e.g. hotels, tour guides). S = Native Hawaiian Hospi- X X X tality Association (NaHHA) B.3 Develop a messaging program (physical and virtual) to educate L = HTA visitors and locals about signifcant sites or areas and pono prac- S = OVB, GMT X X X tices related to them. B.4 Enhance the goHawaii app to include more real time information, L = HVCB road closures, events, local etiquette, resource protection, and S = HTA, OVB X X areas that are of-limits. B.5 Boost the goHawaii app with geofencing capabilities to notify L = HVCB visitors when they are in proximity to a hotspot and redirect them to X X other more accessible areas through a reservation system. S = HTA, GMT B.6 Promote use of the goHawaii app to travelers to encourage safe L = GMT travels and communicate with them to understand where to go and X X X not go. S = OVB B.7 Provide visitors with other means of accessing information such L = HTA as using artifcial intelligence to answer visitor questions or share S = OVB, GMT X X videos and pictures over smartphones to make it easy for visitors to engage. 23
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 Action C Identify sites and implement stewardship plans for key hotspots on O‘ahu. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 C.1 Work with stakeholders to identify sites associated with public L = HTA impact on natural and cultural resources. Prioritize sites where: 1) communities and/or neighborhoods have issues with visitors; S = Dept. of Land 2) conficts exist within communities regarding visitors; or and Natural Resources (DLNR), X X X 3) residents’ access and traditional cultural access need protection. County, private landowners, communities C.2 Work with communities to determine desired conditions or limits of L = HTA acceptable change then identify management actions to achieve/ sustain those conditions to ensure integrity and avert degradation S = DLNR, County, X X X of hotspots. private landown- ers, communities C.3 Develop a process to support government and community collab- L = HTA oration on how to manage and steward sites. Determine if there are similar issues across some of the hotspots, so they can be S = DLNR, County, X X X addressed in a group or pilot program. private landown- ers, communities C.4 Increase opportunities for community-led initiatives that steward L = HTA and manage these resources, including closure of areas and managing trafc. S = DLNR, County, X X X private landown- ers, communities C.5 Advocate for increased funding and resources for Department L = HTA of Land and Natural Resources, City and County Department of S = Community, X X X Planning and Permitting, and City and County Parks and Recreation, to better manage hotspots. private sector C.6 Investigate site user fees or hiking permits that go directly to L = DLNR, County support and manage specifc hotspots and the afected communi- ties. Review studies to determine whether site fees are warranted S = HTA X X X and how fees are to be processed and returned to that spot or community for maintenance, management and enforcement. Evaluate if the fees are working. C.7 Explore the process of requiring hikers to apply for and acquire a L = DLNR, County hiking permit. Fees would also go to reimburse search and rescue S = HTA X X expenses. The process would include mandatory education on safety and protocol while hiking. 24
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 Action D Increase enforcement and active management of sites and trails. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 D.1 Explore ways to improve enforcement of parking rules at hotspots L = County, State and popular visitor attractions. Crack down on illegal tour vans and Public Utilities buses dropping people of at beaches and trails. Commission (PUC) X X S = HTA, community D.2 Increase biosecurity at Daniel K. Inouye International Airport L = Dept. Of and trails. Agriculture (DOA), DLNR/Division of • Promote sanitation protocols for cleaning gear. Forestry & Wildlife, • Encourage responsible visitor practices like cleaning gear at Hawai‘i Invasive X X hiking trails and not tracking in invasive species. Species Council S = HTA, County, GMT, community Action E Develop a reservation system to monitor and manage users at natural resource and cultural sites. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 E.1 Explore a reservation system and demand-based fee pricing at L = HTA popular sites and hotspots. X S = HVCB, County, DLNR E.2 Evaluate the current reservation systems at Hanauma Bay and L = HTA Lē‘ahi to support a sustainable capacity of visitors and advocate for X expansion to other hotspots on the island. S = DLNR, County E.3 Pilot a program for a statewide reservation system that can L = HTA redistribute excess demand to other sites or to other participating X X attractions. S = HVCB, County, DLNR 25
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 Action F Establish a “Regenerative Tourism Fee” that directly supports programs to regenerate Hawai‘i’s resources, protect natural resources, and address unfunded conservation liabilities. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 F.1 Identify how to legally collect this fee (State gives the County L = HTA the authority to establish such a fee), distribute this type of fee, and develop accountability measures. The fee would support S = DLNR, City and County Parks and X X the management system, impacted communities, and workforce development in jobs related to invasive species removal, fshpond Recreation restoration, coral growing, and native ecosystem restoration. F.1a Educate the visitor industry on the need for the fee and how it L = HTA signifes visitor industry contribution to sustainability. X S = OVB F.1b Share with the traveler/visitor about how the fee would be used to L = HTA X enhance their visit by protecting the place. S = GMT, OVB 26
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 Action G Develop and implement marketing programs to attract positive-impact travelers who prioritize the environment, culture and investing in our local community. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 G.1 Continue to develop and focus marketing messaging to market L = HTA segments that appreciate learning about unique cultures and X X X natural resources. S = OVB, GMT G.2 Continue to develop plans to attract higher spending travelers (i.e., L = HTA meetings, conventions and incentives (MCI) visitors, weddings, X X X business travelers, medical tourism, LGBTQ, and arts and culture). S = OVB, GMT G.3 Continue to reassess and adjust marketing O‘ahu with context and L = HTA not just surf and sand. Include island values, prioritize environment X X X and culture to attract the right kind of visitors. S = OVB, GMT G.4 Use marketing campaigns as an opportunity for visitors to connect L = HTA with O‘ahu on a deeper level through immersive experiences, and travel in a way that enriches their lives while giving back to the S = OVB, GMT X X X communities they are fortunate enough to visit. G.5 Continue to develop campaigns to shift visitation from peak periods L = HTA to slower shoulder periods. X X X S = OVB, GMT G.6 Be intentional about what we promote to ensure that it is authentic. L = HTA Enhance the current “The Hawaiian Islands” brand guidelines for the industry partners and encourage consistent use. S = OVB, GMT, X X X visitor industry G.7 Develop metrics and collect data to measure marketing efec- L = HTA tiveness beyond the economic impacts (e.g., Aloha+ Challenge measures, acceptance of tourism by local residents, visitors S = County X X participating in voluntourism, buying local, etc.). 27
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 Action H Continue to develop and implement “Buy Local” programs to promote purchase of local products and services to keep funds in our communities and minimize carbon footprint. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 H.1 Continue to encourage the visitor industry to prioritize purchase L = HTA of Hawai’i based, ‘āina friendly products, services and technology solutions to include literature, crafts, fashion, music, performance S = DBEDT, DOA, X X X art, flm, fresh produce, value-added products, and software. OVB, GMT, private industry H.2 Work with hotels, restaurants, and visitor retail to feature or L = HTA promote local products. S = DOA, DBEDT, X X X OVB, private industry H.3 Continue to leverage programs that support buying local. Coordi- L = HTA nate with various certifcation programs for a cohesive promotion X X X program. S = DOA, DBEDT, GMT H.4 Promote O‘ahu artisans, including local crafts, fashion, music, L = HTA performing, and visual arts. S = DBEDT, OVB, X X X GMT 28
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 Action I Manage the visitors’ use of cars as transportation on O‘ahu. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 I.1 Work with the O‘ahu Metropolitan Planning Organization to examine L = HTA the issues stemming from visitor trafc in impacted communi- ties. Determine how to alleviate those issues such as developing S = County infrastructure to reduce stress on residential areas or a penalty X X X structure to discourage visitors or industry from violating restric- tions. I.2 Support O‘ahu Metropolitan Planning Organization eforts to L = HTA provide safe, convenient, reliable and efcient private and public transportation to shift visitors from driving rental cars to more S = Community environmentally sustainable modes. Include the development, X X X support of, and advocacy for bike paths and the promotion of bicycle use. I.3 Consider creating pedestrian-oriented areas. L = County X X S = HTA I.4 Look at shuttles from parking areas to sites to alleviate individual L = County, DLNR cars or parking reservation systems. X X 29
O ‘A H U D E S T I N AT I O N M A N A G E M E N T A C T I O N P L A N 2 0 2 1 – 2 0 2 4 Action J Work with community partners to develop, market, encourage, and support more collaborative, curated experiences that enrich residents and visitors alike. ACTION ACTION LEAD (L) PHASING NO. SUPPORT (S) 1 2 3 J.1 Increase the number of suitable places for visitor and resident L = HTA activities by renovating popular hikes/sites away from residential areas or developing new sites. Improvements would include adding S = DLNR, County X X X walking paths, developing parking, signage, etc. J.2 Commit resources to promote alternatives to overused sites or L = HTA going of the beaten path. Redirect visitors to areas that can accept higher trafc away from residential areas. Enhance these places S = GMT, DLNR, X X with signage and messaging, develop programs, educational County oferings, increase exhibits, etc. J.3 Develop new recreational opportunities for residents to ease the L = DLNR, County burden on sites that are heavily used by visitors and residents. X X X S = HTA J.4 Explore the creation of a curated “city pass” program to move visi- L = OVB tors to sites and attractions that have capacity and infrastructure to X handle more visitors. S = HTA, GMT J.5 Examine creation of “Kama‘āina Days” at identifed sites with L = HTA priority for weekends. X X S = DLNR, County 30
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